We have 4 items in our September - October Newsletter for you!
1. MARKET SUMMARY & FORECAST: As owner of the R&R Team and as a graduate economist/research analyst, I take great pleasure in completing recurring analyzes of the *Dulles Market Corridor (DMC) residential real estate market and in providing the results of these analyzes to our clients. We strive to ensure that the analyzes are consistently accurate by using only highly reliable data. For those of you who have followed these analyzes over the past 20 years, we believe that you will attest that the analyzes have been consistently accurate in providing real-time assessments of the local real estate market and in also providing an accurate near-term market prospectus.
The DMC real estate market thus far in 2018 has been driven by low inventory levels and good buyer demand. At the beginning of the year, resale property inventory levels were only 20-25% of normal and, while improving since then, are still only 55%-60% of normal levels for this time of year compared to the same time periods during past years. While inventory levels have stayed low, the data indicate that we have had a very good buyer activity and a robust 2018 spring market resulting in home prices appreciating on average at 1.1% per month during the 3 months comprising the spring market (March-May). However, because buyer contractual activity has continued to drop since May, average property appreciation has dropped significantly to +0.1% per month since then. Our analyses also indicate that, while still a sellers market, property values will likely stop appreciating and will begin depreciating during the remainder of 2018 (this depreciation is typical for the local DMC market in the second half of the calendar year).
Besides low real estate inventory levels and reasonably good buyer demand, another major factor that may have significant impacts on the real estate market is increasing mortgage interest rates. Based on the upswing in U.S. economy performance indicators, the Federal Reserve Board at its August meeting increased the prime interest rate for a third time in 2018 and the Fed indicated that they plan to make at least one more rate hike yet during 2018. These rate hikes are intended to offset inflationary pressures in the improving U.S. economy. Thus far in 2018, we have generally seen the 30-year fixed mortgage interest rate increase to the highest levels in over 7 years and, after stabilizing for a while, rates have been increasing in recent weeks...the Freddie Mac weekly survey indicated that the average rate was 4.65% this past week. Many pundits believe that added Fed rate hikes may likely result in a 30-year fixed mortgage interest rate of 5.0% by the end of 2018. While these rate increases seem possible, however, mortgage lenders have reported that they have not seen any significant reduction in applications for mortgage loans thus far in 2018. Of concern though, the increasing interest rates may serve as a knock-out punch for some homebuyers, particularly first-timers.
Our most recent analyzes of market absorption rates indicate that we continue to have a sellers market in the DMC. The market absorption rate for single family detached (SFD) homes indicates that we currently have only 2.4 months of available inventory, while the townhouse market absorption rate indicates 1.2 months of available inventory and condo data indicate 2.0 months of available inventory. FYI: Market absorption rate represents the number of months needed to sell off existing inventory for a particular property type based on recent buyer activity. Real estate pundits nationally and regionally indicate that market forces typically need to stabilize home inventory levels at a 3-to-4 month-supply-level to constitute a normal or balanced market (where economists say that supply and demand are in equilibrium). A market absorption rate that falls below this norm indicates a sellers market, while a rate that is above indicates a buyers market.
Our current market prospectus calls for continued job growth in the Capital Region; a lower than normal residential real estate inventory levels; reduced but reasonable buyer activity; higher but still attractive mortgage interest rates; and, while still a sellers market, depreciating property values during the remainder of 2018. Overall, the DMC real estate market should continue to be healthy but will have reduced buyer contractual activity during the remainder of 2018.
Again, for sellers and buyers who are already active in the real estate market or planning to enter the marketplace in the near term, we highly recommend that you monitor for updates on the local market and review the latest detailed data for each of the important market status indicators on our Team website at this link: R&R Team Blog: Local Real Estate Market Status.
(The *Dulles Market Corridor (DMC) encompasses the large market area of Herndon/Oak Hill, Reston, Sterling/Potomac Falls/Dulles, Ashburn/ Broadlands/ Brambleton, Leesburg/Lansdowne, South Riding/ Chantilly (Loudoun County), Stone Ridge, Aldie/ Arcola and Chantilly (Fairfax County). The R&R Team has been tracking market data closely in the DMC for the past 20 years.)
If you have any questions, please call 703-625-5586 or send us an email today.
2. WHY HIRE THE R&R TEAM TO HELP YOU EITHER BUY OR SELL YOUR HOME (OR BOTH):
Here are some of the reasons The R&R Team has helped over 600 clients succeed over the years in buying and selling homes and we can help you succeed too:
- We are an EXPERIENCED and PROVEN FULL-SERVICE Team; we have successfully closed over 600 transactions for sellers and buyers (more than $210 million in sales volume) throughout Northern Virginia.
- We will apply our more than 20 years of proven experience assisting you every step of the way from start to finish (buyers can learn more details on our services at this link and sellers can see more at this link).
- Most importantly, besides applying our expertise and energies on your behalf, you will enjoy HONESTY, INTEGRITY & RESULTS ... that is our GUARANTEE when you hire The R&R Team!
If you would appreciate our attention to detail and our expertise, then do yourself a favor and call us at 703-625-5586 or send us an email.
3. KEEP THE REFERRALS COMING AND THANK YOU FOR YOUR TRUST! The finest compliment we can ever receive is your referral of our services to your family and friends. Besides using us for your repeat businss, please keep elling your family and friend about our services and please keep seending us your referrals! Here are some key points to remember: sellers pay listing fees as low as only 4%; all buyers get generous cash-back assistance; and our support to our clients continues to be the best in the business backed by nearly 20 years of successful results. Please see added information on our service offerings for sellers at this link and for buyers at this link. Our promise: we will continue to take great care of each of you and your referrals. Thank you for your trust!
If you have any questions, please call 703-625-5586 or send us an email today.
4. REAL ESTATE POTPOURRI: Hopefully, you will find one or more of these real estate-related topics of possible interest.…
- New Tax Laws Provide Tax Benefits With Home Ownership: Homeownership has always been the "great American dream". And Congress did not take it away when it passed the tax reform bill last December. To foster and encourage this dream, Congress has consistently enacted or preserved tax legislation which favors homeowners. This article discusses these benefits.
- How To Get Free Or Easy Money For A Down Payment: Want to buy a house but short on cash to get the deal done? It is a common problem that is keeping countless potential buyers on the sidelines. This article discusses some of the avenues to consider in getting the needed money for a down payment.
- The 6 Most Important Things Every Senior Should Ask Their Real Estate Agent: There are many seniors who are looking to buy a new house, apartment or condominium even after they have retired. However, there are so many different factors that go into finding the right senior living arrangement. This is why any elderly adult looking to buy a new home needs to be prepared and know some of the most important questions to ask their real estate agent. The article provides and discusses six questions that are essential to helping any elderly adult find the home that fits their needs now and into the future.
- Is Blockchain In Your Future? Bitcoins are with us and new on the horizon is blockchain. What is blockchain and how does it work? Anyone doing a business transaction, including buying or selling real estate, insurance, banking or other transactions needs to gain an understanding of the concept…it may be important in your future. IBM in an article defines blockchain as a shared, distributed (online) ledger that facilitates the process of recording transactions and tracking assets in a (secure) business network…virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved. This article offers a good explanation of blockchain and provides examples to help us better understand the concept. Will blockchain be the future rage for real estate and other transactions? The jury is still deliberating and the verdict is still pending.
We very much appreciate your continued support and hope that you find our newsletters helpful. Please feel free to pass this newsletter along to your friend and associates and please let us know if there is any particular subject you would like us to address in a future newsletter. Kindly send us your questions or comments in an email or call 703-625-5586. Thank you.
Ron Layton, Realtor
B.S. & M.S.+ degrees, Licensed in Virginia
Owner, The R&R Team, Inc., 20+ YEARS EXPERIENCE
Awarded Life Top Producer, NVAR Multi-Million Dollar Sales Club
Inducted into RE/MAX Hall of Fame
Affiliated with & Empowered by: United Real Estate
10780 Parkridge Blvd, Suite #80, Reston, VA 20191
Cel: 703-625-5586, Fax: 1-703-997-8772
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